Every year, a large number of people decide to take a leap and invest in real estate in order to gain high returns. With the growing popularity of companies like Nelson Partners that specializes in developing and managing student housing, projects of such type have gained substantial popularity in the domain of real estate. Student housing investment has proven to be pretty resilient to economic fluctuations and hence is considered to be quite an advantageous asset class. The Covid-19 pandemic and the economic impact caused by it have proven this point of merit.
Traditionally, many people used to be apprehensive about investing in student housing with the possibility of students trashing the place or not paying rent in time. But with the emergence of property management companies like Nelson Partners, these risks have been reduced substantially. Modern investors can be assured that the property management companies will be able to find the best possible tenants for their property, and effectively handle the task of acquiring rent from them as well.
Here are some of the major advantages of opting to invest in student housing:
- High Enrollment: Despite of the surging tuition fees in countries across the world, the demand for graduate and undergraduate degrees is steadily increasing. Student enrollment rates are rising continuously, and the need for quality education is pretty huge. The typical factors in perceiving and considering an investment when it comes to real estate include demographics and job growth. But in the case of student housing, high enrollment is the primary indicator. Applications and their continuing processes tend to indicate that a particular region shall be populated with student, especially if it is near a university.
- High Demand: People who have tried being an in-house university student often agree that the majority of the schools do promote or offer housing on campus only to the freshmen. This is due to the fact that quite often these educational institutions are not able to keep up with the high demand. Third party investors and developers usually take advantage of this business opportunity, as universities become unable to sustain the increasing demands among students. Purpose build establishments and apartments are currently developed near to the campus. This real estate trend is witnessed in multiple parts of the world.
Student housing is genuinely one of the only real estate investment avenues that is resilient to the economic downturn. In contrast to what other real estate properties experience, during an economic crisis, a growing number of people end up applying for student housing. This is due to the fact that they think that an undergraduate degree will give them more possibilities to land a job when the labor market has collapsed. A lot of companies today, much like Nelson Partners, are building their business models around student housing because of its growing business potential and high returns. Putting money into building and maintaining college apartments can prove to be an excellent move.
